The dividend of the fund is equivalent to the fund actively reducing the management scale. In order to protect the interests of the holders, the fund's cash dividend can convert the book income into cash income, which is also commonly known as "carrying a bag" to avoid redemption fees. Bian Xiao sorted out here whether the fund dividend is equal to making money and losing money, for your reference, I hope you can gain something in the reading process!

How to choose the dividend method?

General fund dividends are mainly divided into two ways: cash dividends and dividend reinvestment.

According to the Measures for the Administration of the Operation of Securities Investment Funds, if the investor does not specify the dividend distribution method, the default income distribution method is cash dividend. Investors can go to the institution where you bought the fund to modify the dividend distribution method before date of record.

For example, if you hold 6,543,800+shares of a fund, each fund share will receive a dividend of 0.05 yuan: if you choose the cash dividend method, then the basic people will receive a cash dividend of 0.5 million yuan; Assuming that dividends are reinvested and the net value of fund shares on the dividend base date is 1.25 yuan, then the citizen can be divided into 5,000 yuan1.25 yuan/share = 4,000 fund shares, and the fund shares will become104,000. As the total assets of the fund decreased due to dividends, the net value of the fund decreased after dividends.

The default dividend method of open-end funds is cash dividend, but the basic people can change it independently according to the individual's specific situation and the changes in the fund market. When changing the dividend distribution method, the consignment customer needs to bring his ID card and securities card to the consignment agency that originally purchased the fund for modification; Direct selling customers can modify themselves through the fund company's website or telephone trading system.

1. Cash dividends are direct cash dividends, and Friends of the People are equivalent to pocketing some fund assets, thus avoiding redemption fees.

Suitable for people who are not optimistic about the market outlook and have financial needs in the near future.

2. Dividend reinvestment refers to the direct purchase of this fund product with the money obtained from dividends, and the net value after dividends. The advantage of this method is that there is no need to charge a subscription fee.

Suitable for optimistic about the market outlook, no short-term capital needs.

In addition, if you invest in the fund by fixed investment, it is not recommended to choose cash dividends. Because the long-term holding cost of the fixed investment of the fund is high, if you choose to pay dividends in cash at the same time, it is equivalent to taking the money out of the fund assets and putting it in by charging the subscription fee.

Myth: Dividend = Making money or losing money?

1. theory of making money

Although fund dividends can make some fund investments fall in safe places or make continuous investments, they are not extra income. Dividend income is a part of the unit net value and does not create new wealth. When choosing a fund, a citizen friend can't just look at the short-term dividends and ignore the long-term benefits of the fund.

2. Loss theory

Some friends were extremely nervous when they saw the net value of the fund unit plummet suddenly, thinking that the fund had suffered a big loss. In fact, although the fund is paid dividends and the unit net value decreases, the accumulated net value is not affected by dividends. Just like the stock dividend will be ex-dividend, the fund dividend is what we often say, so there will be no extra gains and losses.

Fund dividend means that the fund distributes part of the income to investors in cash, which is originally a part of the net value of the fund unit. According to the Interim Measures for the Administration of Securities Investment Funds, fund management companies should distribute at least 90% of the net income of funds in cash once a year. The "Interim Measures" have expired, and how to allocate them now is subject to the provisions of the Fund Contract.

Dividends are not as much as possible. Investors should choose a dividend distribution method that suits their own needs. Fund dividend is not the biggest standard to measure fund performance. The biggest criterion to measure the fund's performance is the growth of the fund's net value, and dividends are just the cash for the growth of the fund's net value.

For open-end funds, if investors want to realize income, they can also redeem part of the fund shares to achieve the effect of cash dividends; Therefore, whether the fund pays dividends and the number of dividends will not have a significant impact on investors' investment income.

For closed-end funds, it is sometimes not feasible to realize fund income by selling fund shares because the unit price of the fund is often different from the net value of the fund. In this case, fund dividends become the only reliable way to realize fund income. Investors should pay more attention to dividends when choosing closed-end funds.

When distributing dividends, fund managers need to set a date when registered holders can participate in dividends, and this date is date of record. Ex-dividend date refers to the total amount of dividends deducted from the fund assets on a predetermined day. On the ex-dividend date, the net value of fund shares shall be ex-dividend according to the dividend ratio.

Generally speaking, the fund share holders registered on the equity registration date enjoy the current dividend rights of the Fund. If the date of record falls on the same day as the ex-dividend date, the dividend amount shall be deducted from the share net value of the net value of that day. Fund dividends will not increase in value out of thin air. Before dividends, the net value of fund shares subscribed by investors is higher, but they can enjoy dividends. After dividends, the net value of fund shares is lower. As a medium and long-term investment and financial management method, as long as you are optimistic about the future growth trend of a fund, you can consider buying in time.

Since the fund income distributed by dividends is a part of the fund's net value, the fund's net value will be relatively low after dividends. Is it more cost-effective to buy? Assuming that there is no market fluctuation between date of record and dividend reinvestment date, there is no difference in the assets owned by investors whether they buy before or after dividends. This is because, although the subscription before dividends can get dividends and be converted into fund shares, the subscription after dividends can buy more fund shares with the same subscription amount due to the decrease of the net value of the fund.

Tip:

First, we should pay attention to arranging the proportion of fund varieties according to our own risk tolerance and investment purpose. Choose the fund that suits you best, and set an investment ceiling when buying partial stock funds.

Second, be careful not to buy the wrong "fund". The popularity of funds has led to some fake and shoddy products "fishing in troubled waters", so we should pay attention to identification.

Third, pay attention to the post-maintenance of your account. Although the fund is worry-free, it should not be left unattended. Always pay attention to the new announcements on the fund website, so as to have a more comprehensive and timely understanding of the funds you hold.

Fourth, pay attention to buying funds, and don't care too much about the net value of funds. In fact, the fund's income is only related to the net growth rate. As long as the fund's net growth rate stays ahead, the income will naturally be high.

Fifth, we should be careful not to "love the new and hate the old" or blindly pursue new funds. Although the new fund has inherent advantages such as preferential prices, the old fund has long-term operating experience and reasonable positions, which is more worthy of attention and investment.

Sixth, we should be careful not to buy dividend funds unilaterally. Fund dividend is the return of investors' previous income, so it is more reasonable to change the dividend method to "dividend reinvestment" as far as possible.

Seventh, we should pay attention not to talk about heroes in the short term. It is obviously unscientific to judge the pros and cons of the fund by short-term ups and downs, and it is necessary to make a comprehensive evaluation of the fund in many aspects and conduct a long-term investigation.

Eighth, we should pay attention to the flexible choice of investment strategies such as steady and worry-free fixed investment and affordable and simple dividend transfer.

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